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Financial Investment Climate of Bristol-Myers Squibb Pharmaceutical Company

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The sales amount is recorded in the accounting books if there is a very high assurance that the customers will be able to pay their purchase liabilities within the foreseeable future. Likewise, the company includes the revenue amounts in the accounting books if the ownership of the company’ s medicine products had been transferred to the business customers. For example, the company records as revenues in the accounting records all stocks that had already left the company’ s seaport and kept inside the travelling planes, land, vehicles, or boats and are on the way (in transit) towards the company’ s current and future business clients (Beaver 13).

When the revenues are recorded, there is an immediate reduction of the company’ s inventory amount. The inventory amount of the sold medicine products (possibly travelling towards the customers’ addresses) are recorded by taking into consideration the costs of the raw materials, the production workers’ salaries, and other production, admin, and marketing expenses.   For medicine products stored in the company’ s top distributors, the return of inventories classified as nearing their expiration dates will include as on the hand or current inventories of the company (Beaver 13).

Further, Bristol_Myers Squibb_entity’ s inventory-based revenue amounts are constantly adjusted. The adjustments include reducing the revenue amounts in compliance with prescribed accounting policies of each market segment or geographic location. Reduction in the revenue estimates because of certain recent factors will automatically trigger a reduction in the company’ s current revenue amounts shown in the income_statement report and related balance_sheet report (Beaver 13). The company’ s prepared financial accounting data is very useful. Different stakeholders use financial reports for their unique financial decision moves. For example, the investors use financial reports to determine whether to invest funds into the company.  

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